Liu Jie (R), Party secretary of Hangzhou, meets with Hong Kong Trade Development Council CEO Margaret Fong Shun-man. [Photo by Zhang Zhibing/tidenews.com.cn]

For Hong Kong, Hangzhou serves as a vital bridge to the Chinese mainland's technological innovation opportunities. As one of the "Four Asian Tigers," Hong Kong has struggled with a lack of innovation vitality in recent years.

In 2022, the Hong Kong government unveiled the Hong Kong Innovation and Technology Development Blueprint, outlining a vision to become an international innovation and technology hub. One of the four key development goals is to promote the digital economy.

The synergy between Hong Kong's focus on the digital economy and Hangzhou's strengths is evident. "Hong Kong is one of the most service-oriented economies globally, and services are also a strategic pillar of Hangzhou's economy. The alignment in strengths presents vast opportunities for high-end service cooperation," said Liu Jie, Party secretary of Hangzhou.

The robust service sector forms the foundation of Hangzhou-Hong Kong cooperation. Hong Kong's service sector consistently accounts for over 90 percent of its GDP, while in 2023, Hangzhou's service sector accounted for 70 percent of its GDP. Hangzhou's ongoing projects to establish itself as an international hub for new consumption, cultural creativity, fintech, and digital trade align well with Hong Kong's economic framework.

Hangzhou boasts a thriving digital economy, ranking fourth in China for listed companies, with the highest net talent inflow rate in the country for the past few years. Many rapidly growing Hangzhou enterprises seek to finance in Hong Kong, expand into overseas markets, and set up R&D headquarters, providing Hong Kong with a steady stream of innovation. Leveraging Hangzhou's rising urban capabilities, Hong Kong can connect with the abundant innovation resources of the Chinese mainland.

The trend of reverse investment from Hangzhou to Hong Kong is already evident. So far, 56 Hangzhou enterprises are listed on the Hong Kong Stock Exchange, with Hangzhou companies investing in 1,051 projects in Hong Kong, totaling $4.66 billion.